A Study on the Price Sensitivity among the clients

of F.G. Vitug Social and Commercial Printers

regarding their products within Metro Manila and
Quezon City
Baun, Julia Cel J.
Divinagracia, Rizza Mae
O.
Vitug, Katrina Ann G.

Executive Summary
F.G. Vitug Social and Commercial Printers is a print
brokerage firm, formed as a family business. The
owners has extensive experience in the printing
industry.
The company offers printing services for a wide range
of print media including business cards, letterheads,
envelopes, brochures, booklets, business forms,
posters, catalogues, and labels. The goal of the
company is to serve all the printing needs for each
company they work with, and to be a one-stop-shop.
While the services, product quality, and prices of the
company is excellent.

Product & Price

ENVELOPE
Ream

Price

Regular (1 color)

1,500 1,700

Colored (2 colors)

3,000

LEAFLETS/BROCHURES
Color

Price

1 color

2.50 per piece

Full color

4.00 per piece

CALLING CARDS
Color

Price

1 2 colors

700 per box

Full Colors

1,250 per box

LETTERHEAD
Short
Color

Copy Paper
Price

Imported Paper
Price

Black and White

1,200

1,800

2 colors

1,500

3,000

Full Color

2,500

3,500

Long
Color

Copy Paper
Price

Imported Paper
Price

Black and White

1,300

2,000

2 colors

1,700

3,500

Full Color

2,800

3,800

RECEIPTS
Triplicate
Sizes

Bond and
Onion Skin

Carbonless

Price per piece

Price per ream

Price per piece

Price per ream

4x5

55

2,750

150

7,500

5x8

92

4,600

190

9,500

8 x 11

165

8,250

375

18,375

RECEIPTS
Duplicate
Sizes

Bond and
Onion Skin

Carbonless

Price per piece

Price per ream

Price per piece

Price per ream

4x5

28

1,400

70

3,500

5x8

56

2,800

100

5,000

8 x 11

90

4,500

175

8,750

Place

Promotion

Direct Selling
Word of Mouth
Facebook

Statement of the Problem

The study aims to determine how changes in prices of the F.G.
Vitug Social & Commercial Printers products affect the buying
decision of the clients within Metro Manila and Quezon City.
Specifically the researchers sought to answer the following
questions:
1.

2.

What is the demographic profile of the respondents in

terms of the following?
Age
Gender
Civil Status
Income
Level of Education
How effective are the pricing strategies currently used by
F.G. Vitug Social & Commercial Printers in selling its
products to its market?

3. How these customers react to increase/decrease in

prices of its products?

4. How these changes in prices affect customers

perceptions and customers expectations on

product quality?
5. What is the difference between customers

perception and customers expectation regarding

value for money when it comes to price changes?
6. What are the possible pricing strategies that will

make the clients F.G. Vitug Social & Commercial

Printers clients value their products?

Marketing Objectives
In view of these possibilities, the study intends to
achieve the following:
To determine the reaction of its existing clients

regarding the changes in prices of its products.

To be able to identify if the prices of F.G. Vitug Social

& Commercial Printers product are reasonable

relative to its quality.
To create and implement a pricing strategy to make

its prices reasonable as perceived by its customers.

Significance of the Study

F.G. Vitug Social and Commercial Printers

Industry

Clients

Academe

Future Researchers

Conceptual
Framework

Review of Related Literature

Foreign
This describes a study of status consumption and price
sensitivity. The pervasive desire for social prestige motivates
consumers to pay higher prices for goods that confer status.
We
suggest
that
three
constructs
involvement,
innovativeness, and brand loyalty mediate this relationship. A
model using data from 409 U.S. college students. Status
consumption does influence price sensitivity; and this
influence is largely, but not totally, mediated by involvement,
innovativeness, and brand loyalty. The results are consistent
with previous studies and theories regarding these variables
and attest to the importance of status consumption in
consumer behavior. Understanding how such psychological
constructs interact to produce their effects improves
consumer theory and marketing practice.

Status Consumption and Price Sensitivity

(Ronald E. Goldsmith, Leisa R. Flynn, and Daekwan

Consumers' price sensitivity is an important input to strategic

and tactical decisions. Price sensitivities depend on various
factors for which our purpose of this paper is to explore
consumers' price sensitivity and innovativeness as well as to
contribute to diffusion theory by adding information on price
sensitivity. This research reviews how consumers demonstrate
their sensitivities to price on their product purchase decisions.
Consumer's sensitivity to price has a significant impact on
product innovativeness as most of the product purchase
decisions are being made based on price rather than the brand or
accessibility. Our discussions and findings will have important
implications for managers and researchers. Managers may get
guidelines for taking their pricing decisions to achieve maximum
earnings while researchers can go for further study.
A Critical Review of Consumers Sensitivity to Price
(Abdullah-Al-Mamun, Muhammad Khalilur Rahman and S D Robel,
2014)

Local
Knowing about the customers price sensitivity always helps
suppliers to entertain and satisfy them. If the customer is highly
competitive and perceives short term projects, then it is not worth
for suppliers to convince them for high end or expensive products.
The customer will anyway supercharge to reduce the cost or cut
the related frills as it may not be affordable or is out of budget for
them to purchase. So it is important for suppliers to sacrifice on
cost or else he may leave the customer unsatisfied, in worst case
he may loose that customer also. Making fruitful strategies and
positive analyzing cost sensitivity is one of the most important
challenges that an organization could face. On the other hand it is
desirable to deal efficiently with it. The best practice is to preevaluate the customer needs and make a fair offer to them
according to their requirement and budget.
Cost/Price Sensitivity of Customers
(MSG ManagementStudy, 2008)

Access to medicines is an important health policy issue. This paper

considers demand structures in a selection of low-income countries
from the perspective of public authorities as the evidence base is
limited. Analysis of the demand for medicines in low-income countries
is critical for effective pharmaceutical policy where regulation is less
developed, health systems are cash constrained and medicines are not
typically subsidised by a public health insurance system. This study
analyses the demand for medicines in low-income countries from the
perspective of the prices paid by public authorities. The analysis draws
on a unique dataset from World Health Organization (WHO) and Health
Action International (HAI) using 2003 data on procurement prices of
medicines across 16 low-income countries covering 48 branded drugs
and 18 therapeutic categories. Variation in prices, the mark-ups over
marginal costs and estimation of price elasticities allows assessment
of whether these elasticities are correlated with a countrys national
income. Government demand for medicines thus appears to be price
elastic, raising important policy implications aimed at improving
access to medicines for patients in low-income countries.
Analysis of prices paid by low-income countries - how price sensitive is
government demand for medicines?
(Srivastava and McGuire, 2014)

Methodology
Research Design

Descriptive
Respondents of the Study

100 customers aged from 18 and above

Sample and Sampling Techniques

Quezon City and Metro Manila

 Research Instruments

Survey questionnaire

Scope and limitation

Manila and Quezon City

Data Collection Procedure

Quality of the design

Slovens Formula
P = N/(1+Ne^2)
=74,740/(1+(74,740x0.1^2))
=99.87
Where :
P = Frequency Pecentage
e = margin of error
N = total number of population

FINDINGS AND ANALYSIS

Gender

Female
Male

37%
63%

Gender

Frequency

Percentage

Male

37

37%

Female

63

63%

Total

100

100%

Civil Status

Single
Married

39%
61%

Civil Status

Frequency

Percentage

Single

39

39%

Married

61

61%

Total

100

100%

Age

Frequency

Percentage

18 23 years old

12

12%

24 28 years old

62

62%

29 and above

26

26%

Total

100

100%

Income

Frequency

Percentage

12,000 18,000

22

22%

18,001 24,000

30

30%

24,001 and above

48

48%

Total

100

100%

Factors

Frequency

Percentage

Social Media

8%

Word of Mouth

33

33%

Referred by other people

59

59%

Total

100

100%

Factors

Frequency

Percentage

Always

46

46%

Seldom

30

30%

Rarely

24

24%

Total

100

100%

Factors

Frequency

Percentage

Every month

45

45%

Yearly

28

28%

Occasionally

27

27%

Total

100

100%

Factors

Frequency

Percentage

Offering good
quality product

33

33%

Giving discounts

43

43%

Price reasonable

24

24%

Total

100

100%

Factors

Frequency

Percentage

Offering good
quality product

31

31%

Giving discounts

47

47%

Price reasonable

22

22%

Total

100

100%

Factors

Design

40

21

24

10

Durability

30

15

41

10

Price

10

20

60

Packaging

20

50

15

10

Quality

10

55

21

Why do you keep on buying their product?

Rank the following.

5 Very Important
4 Important
3 Moderate
2 Less Important
1 Not Important

Design
Durability
Price
Packaging
Quality

Factors
Price

1(5) + 2(5) + 3(10) + 4(20) + 5(60)

425/ 100

Quality

1(5) + 2(9) + 3(10) + 4(55) + 5(21)

388/100

Durability

1(30) + 2(15) + 3(41) + 4(10) + 5(4)

243/100

Packaging

1(20) + (50) + 3(15) + 4(5) + 5(10)

235/100

Design

1(40) + 2(21) + 3(24) + 4(10) + 5(5)

219/100

Factors

Weighted Mean

Price

4.25

Quality

3.88

Durability

2.43

Packaging

2.35

Design

2.19

Weigthed Mean
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Price

Quality

Factors

Durability

Packaging

Weighted Mean

Price

4.25

Quality

3.88

Durability

2.43

Packaging

2.35

Design

2.19

Design

Price Sensitivity

ENVELOPE
Ream

Price

Regular (1 color)

1,500 1,700

Colored (2 colors)

3,000

ENVELOPE
Ream

Price Sensitivity

Regular (1 color)

1,700 1,750

Colored (2 colors)

3,501 4,000

LEAFLETS/BROCHURES
Color

Price

1 color

2.50 per piece

Full color

4.00 per piece

LEAFLETS/BROCHURES
Color

Price Sensitivity

1 color

3.01 3.50

Full color

4.51 5.00

CALLING CARDS
Color

Price

1 2 colors

700 per box

Full Colors

1,250 per box

CALLING CARDS
Color

Price Sensitivity

1 2 colors

801 850

Full Colors

1,251 1,300

LETTERHEAD
Short
Color
Black and White

Copy Paper
Price
1,200

Imported Paper
Price
1,800

2 colors

1,500

3,000

Full Color

2,500

3,500

Long
Color
Black and White

Copy Paper
Price
1,300

Imported Paper
Price
2,000

2 colors

1,700

3,500

Full Color

2,800

3,800

LETTERHEAD
Short
Color

Copy Paper

Imported Paper

Black and White

Price Sensitivity
1,251 1,300

Price Sensitivity
1,851 1,900

2 colors

1,551 1,600

3,501 4,000

Full Color

2,500 3,000

4,001 4,500

Long
Color

Copy Paper

Imported Paper

Black and White

Price Sensitivity
1,300 1,350

Price Sensitivity
2,501 3,000

2 colors

1,751 1,800

3,500 4,000

Full Color

2,851 2,900

4,301 4,800

RECEIPTS
Triplicate
Sizes

Bond and
Onion Skin

Carbonless

Price per piece

Price per ream

Price per piece

Price per ream

4x5

55

2,750

150

7,500

5x8

92

4,600

190

9,500

8 x 11

165

8,250

375

18,375

RECEIPTS
Duplicate
Sizes

Bond and
Onion Skin

Carbonless

Price Sensitivity

Price Sensitivity

4x5

1,451 1,500

4,001 4,500

5x8

2,800 2,850

5,501 6,000

8 x 11

4,551 4,600

8,750 9,250

RECEIPTS
Duplicate
Sizes

Bond and
Onion Skin

Carbonless

Price per piece

Price per ream

Price per piece

Price per ream

4x5

28

1,400

70

3,500

5x8

56

2,800

100

5,000

8 x 11

90

4,500

175

8,750

RECEIPTS
Triplicate
Sizes

Bond and
Onion Skin

Carbonless

Price Sensitivity

Price Sensitivity

4x5

2,800 2,850

8,001 8,500

5x8

4,651 4,700

10,001 10,500

8 x 11

8,301 8,350

18,876 19,375

Conclusion

Recommendation
Check the products and improve to satisfy
more customer.
Management may make the price affordable
and reasonable but still maintain better
quality products.
They should do a Freebie Marketing.

THANK YOU!